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  • Writer's pictureZiggurat Realestatecorp

House prices rise in Q3

Residential real estate prices went up by 6.5 percent year-on-year in the third quarter due to price increases of duplex housing and condominiums as demand for housing continued to rise, according to the central bank.


Based on the latest Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index (RREPI), home property prices also increased by 4.6 percent on a quarter-on-quarter basis, the fastest rate of increase compared to 1.6 percent in the second quarter and 0.7 percent in the first three months of 2022.



The BSP utilizes the RREPI to assess credit market conditions of the real estate sector. Since index measures the average change in the prices of various types of housing units based on banks’ data on mortgage loans, it can effectively track the prices of single-detached/attached houses, duplex housing units, townhouses, and condominium units.

Under the latest RREPI, the BSP’s average appraised value for new housing units was at P84,589 per square meter (sqm). The average appraised value per sqm in the NCR was P139,283 and P47,129 for areas outside of the NCR.


Housing prices in the National Capital Region (NCR) grew by 17.5 percent year-on-year while prices in areas outside of the NCR also rose by 2.3 percent. Homebuyers purchased new condominiums and single-detached/attached units over townhouses whose prices declined in the third quarter.


“In Q3 2022, prices of duplex housing units, condominium units, and single-detached/attached houses contributed to the YoY (year-on-year) growth in the nationwide RREPI as these prices increased by 26.7 percent, 19.2 percent, and 9.8 percent, respectively. Meanwhile, prices of townhouses declined by 16.3 percent,” said the BSP in a statement.


Quarterly RREPI data, meantime, showed that residential property prices went up by 14.6 percent in the NCR, but dropped by 0.4 percent in the areas outside of the NCR.

The quarter-on-quarter growth was due to the higher prices of condominium units which increased by 12 percent, duplex housing units by 3.4 percent, and single-detached/attached houses by 2.7 percent. However, the prices of townhouses decreased by 2.1 percent.


“Nationwide residential real estate loan availments for new housing units fall YoY, but grow QoQ (quarter-on-quarter),” said the BSP.


Banks’ residential real estate loans (RRELs) during the period declined by 4.2 percent year-on-year as RRELs in the NCR and areas outside of the NCR contracted by two percent and 5.7 percent, respectively, said the BSP.


Nationwide housing loans however rose by 19 percent quarter-on-quarter, following the 32 percent and 11.5 percent growth in RRELs in the NCR and in areas outside of the NCR.


The BSP said about 82.2 percent of RRELs were used to purchase new housing units.

By type of housing unit, 47.5 percent of home loans went to single-detached/attached houses, while 39 percent and 13 percent were used to buy condominium units and townhouses, respectively.


Most of the RRELs granted in the NCR were for the purchase of condominium units, while loans released in areas outside of the NCR were channeled to single-detached/attached houses.


The BSP said 37.1 percent of the total number of RRELs were for the NCR housing units while the rest was spread out over six regions, of which the CALABARZON area accounted for 32.3 percent of total home loans.


Source: BSP

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